What describes a "long position" in a futures contract?

A "long position" in a futures contract indicates a commitment to buy a commodity in the future, reflecting the expectation that the price of that commodity will increase. When a trader takes a long position, they are essentially agreeing to purchase the underlying asset at a predetermined price, believing that the market price will rise above this level before the contract's expiration date. This strategy is especially suitable for traders who anticipate upward price movements, allowing them to profit from the price differential when they eventually sell the asset at a higher value.

This concept is foundational in futures trading, where positions can be classified as long or short. A long position would benefit from rising prices, while a short position, which is not the correct description in this context, would benefit from falling prices. Similarly, hedging risk pertains to strategies designed to offset potential losses, which may involve both long and short positions but does not specifically define a long position. Thus, option C accurately captures the essence of what it means to hold a long position in a futures contract.